Inventory Revaluation

The inventory value of an item can change over time, for example, as a result of damage or age.

If you want to change the inventory value of an item or a specific item ledger entry, you must use the revaluation journal.

You can also use the revaluation journal to correct incorrect posted documents.

Revalue Expected Costs

The program supports revaluation based on actual costs. However, for items using Standard costing method, the program will also revalue based on expected costs. This means that for standard-cost items, inventory that is received but not invoiced can also be revalued. Accordingly, such expected inventory costs are also included in the Calculate Inventory Value batch job like any actual inventory costs. However, only if you select to calculate per item, by location and by variant (on the Options tab of the batch job request form).

Note that by revaluing standard-cost items based on expected costs, the related interim inventory accounts will be affected.    

The Revaluation Journal

In order to use the revaluation journal, you must consider the extent of the revaluation. There are two ways of filling in the journal with information about the current, calculated value of the specified item:

Related Topics

Filling in the Revaluation Journal with the Batch Job

Filling in the Revaluation Journal Manually

Revaluing Items